July 12, 2024
Supply Chain Risk Management Market

Supply Chain Risk Management Market Poised to Witness Growth Due to Increasing Vulnerabilities and Growing Need to Ensure Business Continuity

The Supply Chain Risk Management Market is estimated to be valued at US$ 2.9 Bn in 2022 and is expected to exhibit a CAGR of 9.2% over the forecast period 2022 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Supply chain risk management involves identifying potential sources of supply chain disruptions, assessing their likelihood and impacts, and developing mitigation strategies. It helps companies reduce risks associated with supply chain disruptions and ensures business continuity. Key tools used include risk assessment software, scenario modeling, and vendor assessment programs.

Market Dynamics:
Rising vulnerabilities in global supply chains and the growing need for business continuity will drive the demand for supply chain risk management solutions over the forecast period. Complex global supply chains have become more vulnerable to disruptions due to factors like trade disputes, natural disasters, and pandemics. The COVID-19 pandemic highlighted this issue as it caused severe disruptions in supply of goods. This has made companies focus on minimizing supply chain risks. Furthermore, unexpected disruptions can potentially damage revenues and brand value of companies. Risk management solutions help companies assess vulnerabilities, ensure alternative arrangements, and prevent financial losses. Vendor assessment and performance monitoring tools further aid in selecting suppliers best suited to mitigate risks.

Segment Analysis
The supply chain risk management market is segmented by component, deployment type, industry vertical, and geography. By component, the market is bifurcated into software and services. Among these, the software segment dominated the market in 2021 and is expected to continue its dominance during the forecast period. This is because software offers features such as risk identification, monitoring and compliance to help organizations manage risks associated with their supply chain.

PEST Analysis
Political: Regulations around supply chain transparency and environmental standards are increasing globally, driving organizations to closely monitor risks.
Economic: Volatile global trade policies and fluctuations in commodity prices have increased uncertainty, making risk management vital for business resilience.
Social: Rising customer and stakeholder focus on ethical and responsible sourcing is pushing companies to ensure supply chain resilience and sustainability.
Technological: Advancements in AI, IoT, cloud and analytics enable organizations to better track risks, get real-time alerts and respond proactively to disruptions.

Key Takeaways
The global Supply Chain Risk Management Market Size is expected to witness high growth, exhibiting a CAGR of 9.2% over the forecast period, due to increasing geopolitical uncertainties and supply chain disruptions amid the COVID-19 pandemic. North America dominated the market in 2021 due to stringent regulations around supply chain transparency and data privacy. Key players operating in the supply chain risk management market are Avetta, LLC, Cura Software Solutions, DHL International GmbH, GEP, LogicManager, Inc., Marsh LLC, MetricStream Inc., SZ DJI Technology Co. Ltd., SAP Ariba Inc., Software AG, and The AnyLogic Company. Key players are focusing on partnerships, mergers and acquisitions to expand their footprints and enhance their product capabilities.

The Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising global sourcing from countries such as China and India. Rapid digitization of supply chain activities is also driving market growth in the region. Organizations are increasingly adopting supply chain risk management software to get real-time insights and mitigate risks arising from factors such as political conflicts, natural disasters and infrastructure vulnerabilities.

Key players such as Avetta provide sustainability solutions across supply chain audits, workforce solutions and transportation to help organizations ensure safety, compliance and risk management. GEP helps businesses gain visibility into their entire supply networks, monitor risks and build resilience through integrated risk management solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it